Detroit, Michigan – General Motors has decided to keep its Opel brand and restructure its European operations, after initially announcing that it would sell the brand, most likely to Magna International.
The company cited an improving business environment and the importance of Opel/Vauxhall to its global strategy.
“GM will soon present its restructuring plan to Germany and other governments, and hopes for its favourable consideration,” said GM president and CEO Fritz Henderson. “We understand the complexity and length of this issue has been draining for all involved. However, from the outset, our goal has been to secure the best long-term solution for our customers, employees, suppliers and dealers, which is reflected in the decision reached today. This was deemed to be the most stable and least costly approach for securing Opel/Vauxhall’s long-term future.”
General Motors estimates that, on a preliminary basis, total restructuring expenses will be about €3 billion, which is significantly lower than all bids submitted as part of the investor solicitation. GM will work with all European labour unions to develop a plan for meaningful contributions to Opel’s restructuring.
Henderson said that GM also hopes to build on its already significant business in Russia, and to resume work directly with GAZ to contribute to both the modernization of its operations and the joint development of the Russian vehicle market on a mutually attractive basis.